OPG Power Ventures plc – Half-year Report

OPG (AIM: OPG), the developer and operator of power generation plants in India, announces its unaudited results for the six months ended 30 September 2019 (“H1 FY20”).

 

Highlights

·   Profit from continuing operations increased by 8.9 per cent to £7.4m (H1 FY19: £6.8m);

·   EPS increased by 23.1 per cent to 1.97p (H1 FY19: 1.60p);

·   £9.6m term loan principal repayment in H1 FY20, representing 2.48 pence per share added in value to shareholders’ equity;

·   Gross debt reduced by 17.6 per cent to £70.7m (H1 FY19: £85.9m, £80.4m at 31 March 2019)

·   H1 FY20 total generation of 1.4 billion units (H1 FY19: 1.5 billion units)

·   Average tariff in H1 FY20 was Rs5.66 (H1 FY19: Rs5.20)

Summary financial information (including historic financial data)

£ million	HY 30 Sep 19	HY 30 Sep 18	FY 31 Mar 19
Revenue	78.4	77.9	140.6
Adjusted EBITDA*	18.0	17.6	35.3
Profit Before Tax	9.7	7.6	16.9
Profit After Tax	8.2	6.5	14.1
Earnings Per Share (“EPS”) (pence)	1.97	1.60	3.81

 

* Adjusted EBITDA is calculated as Operating profit before depreciation, amortisation and share based payments

Arvind Gupta, Chairman, commented: “Two years ago the Board adopted a strategy to focus on our profitable, long-life assets in Chennai and to deleverage in order to deliver growth in shareholders’ equity by the transfer of value from debtholders to investors.  This process continued successfully during the first half of this financial year.

“By maintaining our sector leading operational performance, we intend to sustain the rate of term debt repayment with the objective that in 2023 we will be debt free.  As interest costs decline in line with borrowings we will generate increasing levels of free cash flow which, in due course, will increase shareholder value substantially.”